Monterey, California, Business License Tax, Measure H (November 2016)
| Measure H: Monterey Business License Tax |
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| The basics |
| Election date: |
| November 8, 2016 |
| Status: |
| Topic: |
| Local business tax Expires in: Never |
| Related articles |
| Local business tax on the ballot November 8, 2016 ballot measures in California Monterey County, California ballot measures City tax on the ballot |
| See also |
| Monterey, California |
A business license tax was on the ballot for Monterey voters in Monterey County, California, on November 8, 2016. It was approved.
| A yes vote was a vote in favor of imposing a minimum tax per business of $26 per year plus 0.15 percent of gross receipts over $25,000 and repealing the city's business tax system, which varies widely according to the type and size of businesses. |
| A no vote was a vote against this proposal to impose a minimum tax per business of $26 per year plus 0.15 percent of gross receipts over $25,000, thereby leaving the city's business tax system, which varies widely according to the type and size of businesses, in place. |
Election results
| Measure H | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| 8,202 | 73.86% | |||
| No | 2,903 | 26.14% | ||
- Election results from Monterey County Elections Office
Text of measure
Ballot question
The following question appeared on the ballot:[1]
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To simplify the City’s existing business license tax and to fund essential City services such as police, fire, streets, libraries, and parks at current levels, shall the City amend the tax to assess rates equally amongst businesses regardless of function, imposing a minimum tax per business of $26 per year plus 0.15% of gross receipts over $25,000, thereby maintaining current annual revenues of approximately $3.2 million on an ongoing basis?[2] |
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Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Monterey City Attorney:
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Measure H is proposed by the Monterey City Council to update the City’s existing business license tax. The existing business license tax structure includes many classifications of businesses that pay different tax rates. This structure will be repealed and replaced with one tax rate that applies to all businesses. The proceeds of the tax can only be spent on City services and cannot be taken away by the State. The City has imposed the tax on businesses operating in the City since 1926. Under the existing business license tax structure, businesses are taxed at different rates based on the classification of the business, for example auctioneers, automobile repair shops, coin-operated scales and service machines, contractors, vending machines, etc., are different business classifications under the existing tax structure. There are 14 different tax structures based on the type of business. If this measure is approved, a business’ gross receipts (revenues) will be taxed at the same rate regardless of the type of business. Existing law imposes a minimum tax (i.e., $15, $26, $41, $50, or $51) per year and an additional tax based on gross receipts. The amount of the additional tax on gross receipts also depends on the classification of the business. For example, many businesses pay a minimum tax of $26 per year, plus $3 for the first $12,500 in gross receipts, $6 per $2,500 in additional gross receipts up to $37,500, and $3 per $2,500 in gross receipts above $37,500. Measure H simplifies these tax structures by maintaining a $26 tax on gross receipts up to $25,000 and imposing a tax rate of 0.15 percent (.0015) of gross receipts above that amount for all businesses. Thus, it eliminates the multiple tiers in the existing tax structure and uses a consistent rate for gross receipts above the minimum level. The new structure will increase the existing tax on some businesses and reduce the tax for others. However, Measure H is not expected to significantly change total tax payments to the City. Rather it is intended to simplify administration of the tax and modernize the tax. Under Measure H, disabled persons will continue to be exempt from the tax, and honorably discharged veterans of the American military will now also be exempt from the tax. Business license tax revenues are paid into the City’s general fund which is allocated by the City Council through the annual budget for general City services such as police, fire, library services, recreation programs, parks, and maintenance of City streets. Measure H will authorize the tax administrator to adopt rules for its enforcement. Measure H requires approval of a majority of voters. A “yes” vote for Measure H is a vote in favor of adopting the updated business license tax. A “no” vote against Measure H will reject the proposed amendments and continue the business license tax in its present form. A full copy of the ordinance is printed in these ballot materials.[2] |
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| —Monterey City Attorney[3] | ||
Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Monterey, California.
Recent news
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See also
External links
Footnotes
- ↑ Monterey County Elections, "Notice of Local Measures," accessed October 24, 2016
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Monterey County Elections, "Voter Guide," accessed October 24, 2016
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